Adelaide Holden to Shut Down for 25 Days

[csv8]

Workers employed at Holden's plant in northern Adelaide will lose more work, following the car maker's decision to schedule another 25 days of production shutdowns.

The production line closures, to be spread across the first three months of next year, are the result of poor sales amid the global economic crisis, the Manufacturing Workers Union said.

Holden will make 15,000 fewer cars because of the production slowdown.

The car maker's 3,400 workers in South Australia have already had several days off in recent weeks.

Holden official Andrea Matthews assured workers no jobs were currently at risk.

"We always say there's no guarantees in the car industry but what we have preferred to do is introduce these extra non-production days rather than remove jobs," she told ABC Radio.

"We think our workers clearly prefer this as well."

Ms Matthews said Holden was committed to maintaining a manufacturing presence at Elizabeth and was confident of the future.

Not good news, I now we don't like Holden, but we must have sympathy for the workers.

[ea90gl]

Not good news just hope that the holden bogans wake up and realise that the whole car industry is in trouble these days not just Ford. Many jumped on the "falcon's dead" bandwagon as soon as any related article was released now all of a sudden its GM too that is in trouble. Never the less it will be interesting to see how this pans out if GM US goes under.

[xe351]

maybe the gover guy will do an article on this?

[vztrt]

Originally Posted by xe351

maybe the gover guy will do an article on this?

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

[Polyal]

Originally Posted by vztrt

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

HAHAHA I spat my beer!

[AndrewR_AUII]

ALL manufacturing in Australia is in trouble.

[madmelon]

Originally Posted by AndrewR_AUII

ALL manufacturing in Australia is in trouble.

Isn't it ironic that the government is going on about how certaing huge emerging markets to our north will save Australia from the brunt of the looming recession when it is the unethical (and often downright criminal) behaviour of said counties which have contributed to the downfall of almost all manufacturing here...

[seduced_xr]

with a bit of luck holden will go 1st and more fords will sell

[BENT_8]

I hope like hell they dont go down the tube..5000 more jobless bogans in 'Lizbeff is all we need.

[xe351]

Originally Posted by vztrt

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

haha i can see the headline now "Final nail in automotive coffin as holden saves the whales and the world"

[irlewy86]

Holden saves workers jobs by having non production days, Ford sacks people BOOOO! by Paul Gover

[SPK-250]

Originally Posted by BENT_8

I hope like hell they dont go down the tube..5000 more jobless bogans in 'Lizbeff is all we need.

Is that to go with the other 500000?

[ltd_on20s]

the US wont let GM go under. its not in the best interest of the company world wide. directly and indirectly GM services nearly 1.6 million people globally....its a big number. you might see them run on a skeleton crew for a while ala BMW about 20 years ago, but it wont shut down. Plus its an icon.

[vztrt]

Originally Posted by seduced_xr

with a bit of luck holden will go 1st and more fords will sell

Holden go under, Ford will announce shutting down in Oz and the Taurus will be sold here.

[4Vman]

Originally Posted by ltd_on20s

the US wont let GM go under. its not in the best interest of the company world wide. directly and indirectly GM services nearly 1.6 million people globally....its a big number. you might see them run on a skeleton crew for a while ala BMW about 20 years ago, but it wont shut down. Plus its an icon.

GM wouldnt give a second thought to closing Holden, infact if it meant it would reduce their current financial bourdon it would let it go.
GM are on a knifes edge already, they're in no position to bail Holden out...
If Holden went under Ford would flourish.. and vise versa..

[xls3v]

if ford or holden go the other will gain lots of customers and maybe survive. how many falcon customers will buy a taurus.

[Sprint XR8]

There is currently over nine months supply of G8's unsold in the US.
GM INVENTORY DOUBLE OPTIMAL LEVEL; Cobalt-220; CTS-102; Astra-411; Malibu-123; G8-283

------------------------------------------------------------------------------

Automotive News - November 17, 2008

For the first time, the industry-wide stockpile of unsold vehicles has climbed to 100 days.

Supplies shot up from an average of 72 days on Oct. 1 to 100 on Nov. 1. Sixty to 65 days is considered optimal. The industry as a whole had a 69-day supply as of Nov. 1, 2007.

Given October's sales disaster -- down 31.9 percent from the same month last year -- the record high isn't too surprising.

The supply figure is calculated based on the daily selling rate of the previous month.

Full article at link.

----------------------------------

Some of the more stand-out figures:

Enclave - 142
CTS - 102
XLR - 358
Aveo - 102
Cobalt - 220
Corvette - 219
HHR - 107
Malibu - 123
Acadia - 195
G5 - 267
G8 - 283
Solstice - 361
Vibe - 113
Astra - 411
Vue - 196

Some of the surprise figures:

Escalade - 149
DTS - 129
Silverado - 95
Express - 86
Trailblazer - 97
Tahoe - 147
Saab Cars - 110

General Motors average: 126
http://www.autonews.com/article/2008...59919/1197/TOC

[Silver Ghia]

Rather than closures early next year, I would have thought it would be better to close over December like Ford is doing.

Reason being it would be very hard to shift December 2008 cars in 2009.

And as for Gover, his spin would be same as he normally does, something along the lines of a big headline and article on Ford and its problems, and probably not even mention Holdens closures or GM's problems.

[minheim]

The worst outcome for Ford's falcon would be Holden closing and visa versa as the impact on local component and parts suppliers would further undermine local production and the rationale for it. The loss of another manufacturer would inevitably mean more imports and not necessarily a huge increase in local sales to the remaining brands. Here's hoping the government can maintain local suppliers and manufacturers afloat until market confidence returns.

edit - spelling

[Fordman1]

I think this had been coming for a while.

The Ford mindset is to monitor sales monthly and size the business to suit.

It seems that the GM mindset may not be as aggressive. I think there will be more anouncements about Holdens health in the next few months.

Their 'Golden egg' G8 is a flop and they are not selling anywhere near what they need-to to make money on their 'Billion dollar baby'. I'm tipping a big loss for them when they release their 2008 financial results.

I hope they have a business plan which is more than 'Commodore' and its exports, otherwise they're gone !!

[TurboUteris]

Holden shutting down would have more to do with GM's poor financial stability in the US,rather than low Commodore sales.Its still in the top three passenger cars in oz.
Although what shits me is all the Aussie do gooders,swearing they'd buy Australian products until it comes to the crunch and they buy an import.
These few examples of Aussie designed and built machines should have an advantage via Gov. input to make them lower in price compared to the likes of all the imported cars.(could be a tax rebate for buying a locally made car?) Rather than throwing wads of cash at the manufacturer which ends up gowing OS.

[buggerlugs]

They just had a bit on it on the 7.30 report. They said GM sold 45 % less this October than 2007. The report said it doesnt look like the US Government is going to give the car makers the 25 billion at this stage, They will look at it when the new government is in office early next year. The CEO of GM said that would be to late, basically they could go belly up within four weeks .........

[Gobes32]

This is huge news, they are basically not going to make cars for the first three months of next year!!!!!! That is a huge financial strain on holden's finances. You still have your outgoings but there is no money coming in either. Really puts things into perspective. Ford employees have had a really rough go of things the last couple of months but it really hits home when Holden decide to not produce anything for a QUARTER OF NEXT YEAR!!!!!! I am certainly surprised that this is not the biggest news on AFF at the moment...........

[ltd_on20s]

Originally Posted by 4Vman

GM wouldnt give a second thought to closing Holden, infact if it meant it would reduce their current financial bourdon it would let it go.
GM are on a knifes edge already, they're in no position to bail Holden out...
If Holden went under Ford would flourish.. and vise versa..

beg to differ dude, holden australia makes too many models that are shipped overseas now and a cost which the US manufacturing arm cannot compete with. unless they ship the whole shebang over to mexico and we all drive imported SS's the cost of closing it down and making all these models overseas would actually cost gm more then just shutting down for 60 days of the year

theres been heaps of auto manufacturers over the years that have been on knife edges. some have been restructured, some have been sold off to other companies etc. but brand name sells regardless of cost. think BMW, Chrysler, even skoda at one stage were all going to be shut down. few strings get pulled and someone starts desinging cars with heart again and watch people buy.

and yes i know skoda isnt a brand name lol

[Fordman1]

Originally Posted by ltd_on20s

beg to differ dude, holden australia makes too many models that are shipped overseas now and a cost which the US manufacturing arm cannot compete with.

Mmmmmm.........How many models ? 1 ? 2 ?

How many do they export ? The ones that the dealers in the US have 250 + 'days stock' of ?

If Holden were doing so well they wouldn't be shutting down for 25 days in a 3 month period. Remember they have already shut down a shift PRIOR to these 'down days'.

The volumes that Holden produce here could be snapped up confortably else where. Most plants overseas produce 200,000 + cars per annum NOT 100,000 (or less) that GMH do ATM

Commodore is not being built OS because it is not attractive for GM 'volume' buyers in North America (ie: fleets and the private buyer).

[4Vman]

Originally Posted by ltd_on20s

beg to differ dude, holden australia makes too many models that are shipped overseas now and a cost which the US manufacturing arm cannot compete with. unless they ship the whole shebang over to mexico and we all drive imported SS's the cost of closing it down and making all these models overseas would actually cost gm more then just shutting down for 60 days of the year

theres been heaps of auto manufacturers over the years that have been on knife edges. some have been restructured, some have been sold off to other companies etc. but brand name sells regardless of cost. think BMW, Chrysler, even skoda at one stage were all going to be shut down. few strings get pulled and someone starts desinging cars with heart again and watch people buy.

and yes i know skoda isnt a brand name lol

Holden export SFA cars on a global scale... loosing their export imput would mean virtually nothing.

[ltd_on20s]

Originally Posted by Barraxr8

Mmmmmm.........How many models ? 1 ? 2 ?

How many do they export ? The ones that the dealers in the US have 250 + 'days stock' of ?
.

statesmans to china
caprice/statesman/ss/lumina to midddle east
utes and ss models to south africa
not sure if still doing left hand drive pontiacs

about 40% of all GMH cars are shipped overseas

they have their fiinger in a lot of pies. its a strong position to negotiate from

[Fordman1]

Originally Posted by 4Vman

Holden export SFA cars on a global scale... loosing their export imput would mean virtually nothing.

How true it is.

Lets see how much profit they annouce this year

[Fordman1]

Originally Posted by ltd_on20s

they have their fiinger in a lot of pies. its a strong position to negotiate from

Negotiate with whom ?

25 down days tell me they have SFA in their court to negotiate with.

[4Vman]

Originally Posted by Barraxr8

Negotiate with whom ?

25 down days tell me they have SFA in their court to negotiate with.

Yes.. you can export a zillion cars a year but if you loose money doing it you'll go broke!
Holden have coped a wack from exporting.. just look at their financial position..